HVA Foods likely to get green light to commence work on US $ 4mn agri resort project

By Chandeepa Wettasinghe
After years of delay, HVA Foods PLC is likely to finally receive its legally entitled lease agreement for a 175-acre state land near Wilpattu to start a US $ 4 million organic agricultural resort, expanding a 20-year-old pilot project.
“The lease agreement was signed in 2012 and we’ve paid nearly Rs.5 million in lease payments. We’re still waiting for the deed to come,” HVA Foods PLC Chairman Rohan Fernando told Mirror Business yesterday.

At the 11th Ease of Doing Business Forum held last week, Fernando appealed to Finance Minister Ravi Karunanayake to ask the Land Ministry to provide the deed and Karunanayake instructed the Land Ministry officials to release the deed or to expect interventions from him.
Fernando noted that in 2009, the Supreme Court ruled the HVA Foods subsidiary HVA Farms (Pvt.) Ltd be allocated the land, after the activists, backed by groups with vested interests, disrupted operations at a 25-acre HVA Farms pilot fruit farm project in the same location and obstructed the disbursement of land since 2006.
According to him, just 60 percent of the 175-acre expansion land is arable, with mature trees and water bodies spread across the remaining area.
“We don’t want to cut down the mature trees for agriculture, so we will be building barn houses for people to come and live, plant, meditate, do yoga and feel good about themselves – the whole agro tourism concept. The barn houses will have solar power, rain water harvesting and water treatment. One house is already built. There will also be tented camps,” Fernando said.
He added that the tourism project, named ‘San Vincent Ranch’, would require investments of around US $ 4-5 million.
The fruit and vegetable sales to local and international customers alone are projected to derive US $ 3-4 million in revenue annually, with the plan including value-added production with fruit pulping and dehydration stations.
Fishing activities are also envisaged through the propagation of fish in the water bodies.
Fernando said that the expansion plans have already received the necessary environmental clearances.
“So, as soon as I get the lease, I will go to the bank and then get some investors and later even go public with an IPO (initial public offering),” Fernando said.
The 25-acre pilot project had brought in Rs.500,000 in monthly income just from the export of a special variety of papaya to Maldivian resorts, according to Fernando. Mangoes, guava, cashew and oranges had also been cultivated.
Fernando said that both the old and new land area is already demarcated with a solar-powered electricity fence to fend off elephants and includes facilities for rearing buffaloes for manure and to hold 1,000 hens for egg production as well.
Despite being located at the very edge of the two-kilometre buffer zone that protects the Wilpattu National Park, Fernando said that the area allocated for HVA Farms has never experienced any wild elephant attacks.
“This is the best possible concept you can have for the country. It’s located in an area with food and water security issues. Because it’s organic, it will be a CKDu-free zone,” Fernando said.
HVA Farms had initially requested 500 acres in the 1990s, but was allocated 250 acres, including for the 25-acre pilot farm. However, another 50 acres were not released by the state, in order to construct a reservoir.
HVA Foods produces the Heladiv tea brand and operates the Heladiv Tea Club tea cafes.